When the Property Management Guide book was being written, I came up with a way to group all 53 of the different principles together to make it easier to see how they all interrelate to each other. It also made more sense to call them perspectives, as it was not just a case of placing them in prescribed groups for the sake of it but rather seeing the logic of how they relate to each other and the natural flow of how you may go through them consecutively as you consider the management issues at a property.
So four property perspectives were created as well as four different angles or ways to look at the same property or property interest. However, this means there may be some overlap; for example, such and such a principle may need to be considered from more than one perspective. It helps to at least nominate the main perspective and allocate to it.
It also made sense to follow these perspectives in a certain order, whereas often people end up doing it literally the other way around. So instead of ending up in the detail, they start off with it and miss the main bigger-picture issues about the property.
You can see a video explanation of these and transcript here, and which are outlined below.
1. The Property Perspective
Start by looking at the actual property itself, the real-life brick-and-mortar of what it is. If a property is more of an investment interest, then you’ll be less inclined to do this and be more bothered about the values or yields or costs on paper from it. But the mistake I see time and time again is that the detail of the property itself will eventually affect these end figures; rather than like, say, a typical financial investment, the real thing makes or breaks it.
Just like the analogy of a car when seeing the value of property management, if you invested, say, £20,000 in a unique 40-year-old classic car, the actual way the car looks and performs will directly affect its end value as the value is inherent from the individual asset. If the chrome bumper on that particular classic is corroded, then that may take £500 off the value. So get to grips with the building—the fabric, the uses, the utilities, how it’s secured, and all the under-the-bonnet detail about it.
2. The People Perspective
Once the property asset itself is sussed out, work out who’s playing what role in the property game as it is their ‘interest’ in that asset that is the key to how it is used, traded, and valued. This means that personalities and their interests do play a part in things, not only the ‘other side’ like a landlord/tenant or seller/purchaser but also those working with you to make sure the end goal is accomplished.
Gauging the right way and time to be black and white and forceful on issues as opposed to, say, more friendly and amiable is often an art and can have a dramatic effect on the property management issues at hand.
3. The Payment Perspective
Understandably, the money is what things boil down to—the right price or value being paid or received or the reduced costs and expenditure being incurred. Getting this correct is therefore critical, and making sure it reflects the true property, and people perspectives should already be looked at. Not knowing all the true overall payment issues will mean you naively only look at the initial deal figures and are then shocked when those nasty costs and extras come knocking on your door afterwards, sometimes many years later.
4. The Paperwork Perspective
The story ends with getting everything clear in writing and correctly documented, failing which things can come back and bite. This needs to be correct, truly reflecting all the property, people, and payment issues involved and going for quality rather than just quality of paperwork, including other non-paper forms such as emails and digital copies.
Getting the Right Perspective
Going through these four perspectives to property management, and in the most logical order, will help you begin to see all the different angles and issues involved. You will then be able to begin making sense of what's involved, and what particular issues you need to address.
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